opportunity cost, success, analysis, invest, consumer, market, weakness, strategy, research

Why Investing Early Might Have Changed Your Life


NFTs and blockchains have changed the paradigm of money. Young adults from gen z has made fortune in the bubble. It somehow defines that regardless of age, there would still be opportunities. It changed the way of how money could get to you. With all said, investing is still crucial part in everyone’s life and we all know fast money doesn’t happen all the time. Till this day, investing is still an art. Let’s discuss the compounding reasons and opportunity cost.

NFT

 

Getting Finances Right In 20s Is Crucial

It’s cool that you should be spending and enjoying life once you start working. Even so, it is possible to start investing and accumulating wealth. The value of money in your 20s is equivalent to 100%+(inflation & money supply rate %) to the value of money in your 30s. Therefore, for every $100 spent, it is the opportunity cost of what could be $100 multiplied by 10x-1000x if that money is put into crypto/stocks/etfs over 10 years. Whenever I’ve to spend on big ticket items, I’d always feel that the value of it could be huge because of the opportunity cost. I feel that big ticket items/commitment should be spent in moderation in your 20s or early 30s. Once there is sustainable yield from the accumulated assets, spending those items when you could afford it would be considerably “cheap”. For example, if you wish to get a Rolex or an item that’s more than 20% of current salary, the opportunity cost of getting it in your 20s and getting it in your 30s would weigh differently.

 

inflation

Why Immediate Investing

In the long term, time in the market is better than timing the market. The value of the current fiat would depreciate over time. Our $1 would worth $0.5 in 5-10 years from now. Because of the power of compounding, every dollar invested in your 20s is worth every $10 invested in your 30s. When we’re investing on crypto or stocks, we’re leveraging on those assets with our money. We’re investing on the brains of every employee/team and their profit strategy as a business. Therefore, investing is like eating to me. It is an essential where everyone should be doing regardless if they like it or not.

 

inflation graph

 

Invest In Scarcity, Something That Rich Would Be Interested In 10 Years Down The Road

It is good that you’ve started investing, but it is better if you know what you’re investing would be scarce and valuable years down the road. The reason why price valuation increase is because of the asset being scarce and valuable. Apple, Google, Amazon, big tech companies now started as a startup 10-20 years ago where majority were doubtful of its value. Only a few that researched and had enough conviction in it to hodl through the dips and high till now have profited. Such opportunities are always there in any time horizon, however risk are always there as well. It’s better to do your own research and due diligence to have that conviction to hodl through -40, -50, -60 % dips. Assets like crypto, web 3.0 and tech growth companies like Palantir, unity have those characteristics. But still, not many would hodl through and paper hands whenever there is fear in the market. These assets would require the same timeframe 10-20 years like Apple & Google to be the next bluechips. Therefore, conviction and patience is key to reap what you sow.

 

scarcity in dollar

 

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Disclaimer:

All of these are merely my knowledge and not financial advice. Please do your own due diligence and have conviction before investing. The information above is based on many hours of research out of my own curiosity/interest in YouTube, Google, blogs and discord communities. Leveraging & filtering information from other crypto enthusiasts and analysts.

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JoeyLiu996
JoeyLiu996

Curator of information and content relevant to Crypto, Defi, Gamefi, DAOs, Blockchain, AI, NFTs, Metaverse and other disruptive technologies. Most information comes from YouTube, Google, Blogs, IG, Discord communities combined with a hint of my thoughts.


Stock and Crypto Markets
Stock and Crypto Markets

Blog section that is all about stock and crypto market. Most of the it would be high risk assets which I have conviction in. Also about market sentiments and overall performance. All these are more of financial knowledge but not financial advise. Do your own due diligence and have your own conviction before investing into any asset.

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